Disappointed with the durability of most retail COVID-19 masks,serial entrepreneur Blaze Collat has developed a fire-proof and ultra-durable mask for the modern day dragon. In order to obtain a financing, Blaze must invent a pro-forma income statement and balance sheet to prove his vertically integrated mask production and sales venture will be a success. Blaze plans to use $10,000 of his own money plus $20,000 from his buddy and business partner Pete to help capitalize the business. Of this money, Blaze plans to spend $5,000 on a sewing machine and other property, plant and equipment to make masks. He also will spend $10,000 to build an initial two-month supply inventory for the business. If approved, Blaze will receive a $30,000 more in start-up funds from a 10-year term loan from UAB's Pump and Dump Fund, a quasi-angel investment fund managed by riskseeking students. Help Blaze complete his pro-forma financials for the period December 1, 2020 through February 28, 2021 based on these assumptions: On December 1, 2020 Blaze officially will begin operations by manufacturing masks, hiring employees and making sales. After three months in operations, Blaze expects to report $65,000 in net sales (revenues) with a costs of goods sold of $15,000. Between December 1, 2020 and February 28, 2021, Blaze believes he will incur an average of $7,000 per month on employee wages, $5,000 per month on material inventory, $1,500 per month for rent, $1,000 per month on social medial marketing, $500 per month on loan interest. During his first three months in operations, Blaze plans to reduce the principal balance on his bank loan to $29,000. Before the end of the first three months, Blaze also plans to add two additional investors that contribute $10,000 each. In February, Blaze expects to purchase one more sewing machine for $5,000 cash and another sewing machine with his credit card for $5,000. Using the forms below, help Blaze fill in the complete his pro forma balance sheet and income statements for the Pump and Dump Fund.

Income Statement December 1, 2020 - February 28, 2021

Income (3 month period)

Gross Sales (revenues) ___________

Cost of Goods Sold ____________

Net Operating Income ___________

Operating Expenses (3 month period)

Employee wages ________________

Marketing ______________

Rent _____________

Loan __________

Interest _________

TOTAL Operating Expenses ___________

NET INCOME ____________

Balance Sheet

December 1, 2020 February 28, 2021

Assets

Dec 1, 2020 Feb 28, 2021

Current Assets

Cash ____________ __________________

(hint increase or decrease by

the amount of transactions)

Inventory/Materials ________________ ___________________

Property, Plant & Equipment ________________ ___________________

TOTAL ASSETS ________________ ___________________

Liabilities

Current liabilities

Accounts payable (credit card) $0.00________ ____________________

Long term liabilities

Loan payable __________________ ____________________

TOTAL LIABILITIES _____________________ _____________________

Owners Equity

Capital Contribution ______________________ __________________

Retained Earnings $0.00 ___________________

(hint use net income number)

TOTAL EQUITY _______________________ __________________